Ombudsman only for complex cases, says Irda

KOLKATA: The Insurance Regulatory & Development Authority (Irda) wants insurance companies to redress the bulk of customer grievances and refer only very complex cases to the insurance ombudsman.

"Since customer grievances are addressed to insurance companies, we would like most cases to be resolved by the insurers themselves. Complaints may be referred to the ombudsman only if some grievances are very complex, " Irda chairman CS Rao told ET.

"We are revamping the existing grievance redressal systems which insurers have developed own their own. Irda has sought suggestions from insurance companies for improving such systems to facilitate customer redressal at the insurer level. Protection of policy-holder interests is top priority at Irda," he said.

Incidentally, Irda is not in favour of the Law Commission's recent recommendation calling for replacement of the existing system of insurer-appointed ombudsman and district courts. The Law Commission has advocated creation of a separate grievance redressal mechanism in the form of a Grievance Redressal Authority (GRA). Its recommendations are being examined by the Centre.

The Commission has also suggested that the GRA may comprise one judicial and two technical members to deal with complaints and claims of policy-holders against insurers. "We are not in favour of GRAs as these would not have the accessibility district courts or the ombudsman has," Mr Rao explained.